CMSB going up steadily. Missed out this round.

http://www.thestar.com.my/Business/Business-News/2014/11/03/Steel-remains-competitive-Local-sector-continues-to-be-viable-on-rising-demand/?style=biz

PETALING JAYA: The local steel industry is still viable and competitive given the increasing demand in the apparent steel consumption (ASC), which has crossed the 10 million tonnes mark last year, said Malaysian Iron and Steel Industry Federation (MISIF) president Datuk Soh Thian Lai.

The ASC is expected to grow by 4% per annum from 2014 to 2016, he said, adding that the projection is 10.5 million tonnes this year, 10.8 million tonnes in 2015 and 11 million tonnes in 2016 based on the baseline growth .

This was despite the industry facing significant risks such as increased dumping of cheaper imported steel, high costs and volatile prices of raw materials such as scrap and iron ore as well as the hikes in electricity and gas prices in recent years.

“To stay competitive, the steel sector is urging the Government not to issue new licences on products currently produced, encouraged investments on new steel products as well as enforced buy Made-in-Malaysia steel products policy,” Soh said in a panel discussion at a MISIF steel conference held here recently.

“If all the government-linked companies (GLCs) and government owned projects are using local steel products, we believe at least two to three million tonnes of local steel per year can be increased to replace net imports,” he added.

The Government also needed to impose more trade measures to help out the injured steel millers affected by the cheaper imported steel products, especially from China flooding into the local market in recent years.

“Under the WTO (World Trade Organisation) rules, we have the right to do so (trade measures).

“After steel bar, we should look at other affected businesses such as galvanised iron products, cold rolled coiled products and pre-fabricated pre-painted steel products.”

Soh pointed out that the government should also provide incentives such as full off-peak period rates for electricity and natural gas during public holidays and weekends to help out the steel industry players have a competitive break to produce lower cost products.

The strategic steel sector in Malaysia is estimated to worth over RM40bil, hiring 150,000 direct employment and about 100,000 indirect employment.

Given the continued dumping of cheaper imported goods, crude steel production in Malaysia has dropped sharply while finished steel production was flat, totalling 4.7 million tonnes and 7.5 million tonnes respectively.

Soh noted that the low facility utilisation with significant under-utilisation included bars and wire rods, sections, plates and flat rolled products.

Ann Joo Resources Bhd group managing director Datuk Lim Hong Thye concurred that the domestic steel sector is still competitive, but “the issue here is how the government can help the industry to address the influx of cheap steel products from China.”

Contrary to the perception that the local steel outlook is quite bad and Malaysian steel millers are not competitive, he pointed out that Malaysia has the strategic location, good infrastructure, stable road transportation and utilities which are conducive to develop a strategic steel sector.

“However, the steel landscape here has changed as the sector is no longer looking at cheap workforce as we need skilled workers especially in the upstream side.

Relatively, Malaysian steel players are better than their South-East Asian counterparts, said Lim.

“While some suggested that buying cheaper imports will help to lower the cost of construction but are these so called cheap China steel products sustainable especially the boron-added-type alloy steel? ”

CSC Steel Holdings Bhd managing director Chen Chung Te, meanwhile, said many other countries like Asia, Europe and the United States were also affected by influx of cheap steel imports from China.

For Malaysia, which is looking at achieving the developed economy status by 2020, he suggested that local steel players venture into high quality steel production for automobile and the electrical and electronics sectors. “The local industry should try to improve on its supply chain by investing into high facility whereby you can supply at least 70% to 80% to the niche sectors while 20% for export,” he said.

thx investor99 for research. the SC yet to approve extension.
thx ks55 for the opinion piece.

http://www.bursamalaysia.com/market/listed-companies/company-announcements/1782629

Bursa decision is deferred.

movement

see quite a few familiar names here. investors. here's to our day in the sun when it comes....

Vgood to know. Thx. I didn't go in in the end. Added a little more to 0021.

Thx. No worries.

Seconded. I am still long on this one.

learnt a few painful lessons rather quickly there is the only positive I can take from it.

newsprint in Focus Msia led to averaging up. otherwise would have been safe. mad at the misinfo.

Current world iron ore glut will reduce raw materials cost.

Gas hike 01 Nov may have cost impact eventho electricity is the main power source.

Thks ckwan. Does this co supply beyond Perak, like say to the Klang Valley or Penang/Kedah?

did they coop with Focus Msia too on that wrong eTRS news? they said they would take "firm action". someone must ask CCS at the next meeting what is this firm action.

Entitlement today 5pm per 15Oct announcement.

Today last day to buy to qualify for divd. Can sell tmrw and still get the divd.

Thks ckwan for intro to OKA. I chkd it out today.

True today so far. Yday was different though. They blocked and pingponged in the mid-4.2Xs and then late afternoon opened the floor to let it go down to 4.1Xs and close 4.17.

a couple of industry updates applicable to local steel players:

BFM Podcast 23 Oct 2014 "Steeling Reserves" on present state and outlook
http://klse.i3investor.com/blogs/bfm_podcast/62370.jsp

Kenanga industry update 14 Oct 2014 (after visit to Masteel)
http://klse.i3investor.com/blogs/kenangaresearch/61682.jsp
Potential trade actions should improve steel price environment. :
.... we gathered that local steel players have been working with the government to resolve steel dumping issues and we expect some trade measures to be announced by 1Q15 which should improve local steel prices. Potential measures include anti-dumping duties, import licensing measures and export restrictions on steelmaking raw materials. Furthermore, on 6-Oct-14 Reuters reported that China steel export incentives (including tax rebates on certain steel products) have been cancelled, according to a China Iron Ore and Steel Association (CISA) official. Hence, CISA expects to see lower steel exports from China in 2015 despite unchanged output levels. With these developments, we are optimistic on local steel prices and estimate a 5-10% improvement in FY15E steel prices should trade actions be passed.

Pingpong this morning.
(avg bid 64lots) 4.15<->4.16 (avg bid 31lots)

Ckwan11d and fellow forumers, apologies for my bad on 24/10.
When I first updated ChartNexus shortly after close, it was a white maru. Next day update it no longer is! Later I encountered similar with another counter. So, lesson for me is to better update ChartNexus a few hours after close.
Again, sorry folks!

strong move. dun wanna be overtaken by 0023.

Perplexing indeed!

typo : should read Schlumberger

To the experts here: is SKPETRO any way similar to Schumberger and/or Halliburton in the business segments they operate in?

small up today to yday's giant leap. more of the same thank you.

Seems weird there is no letterhead for the Salamander 1-pager in the Bursa announcement.

at least holding unchanged today. hopefully no stay in the red zone.

http://www.bursamalaysia.com/market/listed-companies/company-announcements/1778113

QR out. Positive.

Could be Quarterly related. Previous years 29Oct 2013 and 30Oct 2012.

right. the operator/driver takes no prisoners.

now 0.05 under ex-dividend 4.28 of 7 days ago

correction is in progress.....

Can drop but it will depend on the strength on the stock. TSH yesterday went up after ex bonus.

There should be a re-adjustment to two-thirds today's closing price.

Looking to narrowing my gap too.

Thanks ks55.

http://www.bursamalaysia.com/market/listed-companies/company-announcements/1776509

Annual Report 2014 out today.

http://www.bursamalaysia.com/market/listed-companies/company-announcements/1775417

Notice of 41st AGM on 18Nov 2014

Bursa decision today?

01 Oct 2014 update via Bursa re seeking extension until middle of next year.
---------------------
The Board of Directors of the Company hereby announce that the Company has up to 25 October 2014 to submit a plan to regularise its financial condition (“Regularisation Plan”) to the relevant authorities for approval and the Company had on 1 October 2014 submitted an application to Bursa Malaysia Securities Berhad (“Bursa Securities”) for an extension of time from 25 October 2014 to 30 June 2015 for the Company to make the submission of the Regularisation Plan to the relevant authorities.

So it means (re)entry is on your radar when opportune. Fair enough.

Consolidation could be a way out as mooted by MISIF president in May.
http://www.theedgemalaysia.com/business-news/287916-highlight-steel-players-urged-to-consolidate.html

Thank you for your warning. You have sold your positions then I guess.

For the more experienced forumers, can share if Bursa can threaten suspension when Regularisation Plan has not even been submitted. Here, we see Lioncor asking for extension to submit. In High5 case (delisted today), they submitted RP but not approved.

Megasteel should be around because of strategic importance to the nation.
Question is whether it stays in a listed Lioncor or a delisted one.

11th MISIF Conference on “Status & Outlook of the Malaysian Iron & Steel Industry”16 Oct 2014

“Charting the Malaysian Iron and Steel Industry to Greater Heights”
by Mr. Tony Lee, Chief Executive Director, Malaysia Steel Institute (MSI)

http://www.misif.org.my/images/pdf/3-tl.pdf

------------
Main takeaway for me is that to become a developed country, steelmaking has to move from long steel (infrastructure centric) to flat steel (industrial use centric, value added) like US/Japan early 2000s. Cannot be held ransom to imports. Lioncor is the major domestic flat steel player. Protection and nurturing is required for domestic flat steelmakers.

Maybe no share buyback required because low 14.96% percentage is public? Any previous buyback?

LIONCOR Shareholding summary
------------------------------------------
Public Corporations 71.59% (Liondiv 49.04, Lionind 19.03, Yinson 2.53, DRB-Hicom 0.26)
Private Corporations 11.18%
Individuals/Insiders 1.72%
Institutions 0.56%
Public & Other 14.96%

source: N2N with S&P Capital IQ